Central Bank of Kenya(CBK) received bids worth KSh 46.3 billion at the weekly treasury bills auction that also saw the short-term 91-day treasury bills interest rates fall below 15% for the first time in months.
- At this week’s treasury bills auction, CBK was offering interest rates on the 91-day, 182-day, and 364-day treasury bills at 15.73%, 16.86%, and 16.53% respectively.
- The 6-month Treasury bills were the least attractive at the auction, receiving bids worth KSh 10.56 billion, a performance rate of 105.64%, with the fiscal agent accepting KSh 10.51 billion.
- Investors appear to be shifting to the long-term 364-day treasury bills, which received bids worth KSh 19.29 billion, an oversubscription of 192.86% while the CBK accepted bids worth KSh 18.81 billion.
CBK is cutting down on domestic borrowing requirements, a move that is bolded by a stronger Kenya Shilling exchange rate against the US dollar, which implies reducing the repayment of dollar-denominated foreign debt.
According to the CBK auction results, investors still prefer the short-term treasury bills, which received bids worth KSh 16.42 billion against KSh 4 billion offered, an oversubscription of 410.43%. The state fiscal agent accepted bids worth KSh 16.38 billion for the three-month debt instrument.
At the previous week’s treasury bills auction, the 91-day T-Bill registered an acceptance rate of 90.33% in the week to raise KSh 7.85 billion. Overall, spot market yields dropped by an average of 1bps w/w across all papers.
The average accepted yields on the 91-day, 182-day, and 364-day papers stood at 16.7243%, 16.8738% and 16.9898% respectively.
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